Thailand’s Agency for Real Estate Affairs (AREA) has predicted that reduced purchasing power will result in 8 percent fewer new units being launched this year.
During the first six months of 2018, AREA found 43,703 new units from 174 new developments in the Bangkok Metropolitan area.
It found the average price per unit was THB 4.25 million.
Dr. Sopon Pornchokchai, the President of AREA, said that the decline in the number of new units implies a sharp shrinkage of the Thai economy, despite the efforts of the Royal Thai government.
AREA forecast that during 2018 there should be some 421 new project launches, which would be 3 percent more than the number of projects launched during 2017.
However, the number of units launched would be some 105,761 which would be 8 percent lower than during 2017.
Dr. Sopon said the figures of newly launched projects and units were the most realistic indicators.
When the situation was bad or the economy was not performing well, he said that fewer new developments would be initiated.
One implication of these findings is that the Thai economy has not fully recovered.
He concluded by saying the investing in Thailand’s real estate markets requires analysis and scrutiny.
AREA has been collecting real estate market data in Thailand since 1994 and is widely recognised as the largest real estate information centre in the kingdom.